One thing I know for sure when it comes to business is that nothing ever stays the same.

Everything continually evolves.

So what you start with is not what you end up with. Allow fluidity in your business and utilise feedback to improve your service based products.

As we all know, building a great product that sells well is essential for any service based business looking to thrive in competitive markets.

For service business owners, developing a product that meets customer needs, stands out in the marketplace, and has a clear value proposition is crucial.

Here’s a little guide I have created to help you design, refine, and sell products that customers will love.

It seems obvious but - Start with the Customers Needs.

The foundation of any great product is a deep understanding of your customers’ needs and pain points.

Products and services exist to solve problems.

So begin by conducting thorough market research and collecting customer feedback. This might involve surveys, interviews, or even analysing online reviews of similar products. The goal is to gather actionable insights that will inform the design and features of your product.

For example, consider Slack, the messaging app for teams. Its founders recognized a growing need for better team communication and collaboration. By focusing on that specific need, they developed a product that not only solved a real problem but also became indispensable to many businesses.

12 Ways To Effectively Market A Product Or Service

Create a Clear Vision and Strategy

Before jumping into product development, it’s essential to have a clear vision and strategy in place.

This includes defining your product’s purpose, target audience, and unique value proposition. Establish clear objectives for your product. What do you want it to achieve for your business and your customers?

A compelling example of this is Apple. When Apple develops new products, like the iPhone or MacBook, they create a clear vision of what role that product will play in users’ lives. Apple’s strategy is rooted in simplicity, premium design, and user experience, making their products desirable and easy to sell.

Prioritise Customer Centric Design

Your product must be designed around the needs and preferences of your target audience.

This is referred to as customer-centric design. Successful products are easy to use, visually appealing, and tailored to the user’s experience.

Take Canva, the graphic design tool, for instance. It was created to simplify graphic design for non-designers, focusing on user-friendly features and templates. This customer-centric approach led to widespread adoption across various industries.

When designing your service based product, whether it’s an online course, a consultancy package, or a membership service, ensure that your product resonates with your target customers and offers them clear benefits.

An excellent way to gauge this is to continually solicit feedback during the development process and iterate based on that feedback.

Test and Adapt

Building a product is a dynamic process, so it’s crucial to test your ideas, collect feedback, and iterate continuously.

Small-scale testing allows you to refine your product before investing too much time and resources into a full launch.

This principle is followed by many successful businesses, such as Dropbox, which began as a simple MVP (minimum viable product). By testing a basic version of their service and collecting user feedback, they were able to refine their offering and ensure product-market fit before scaling.

Consider launching a beta version of your product to a select group of customers and asking for their input. Make changes based on their feedback, and don’t hesitate to pivot if necessary.

Strategic Pricing

Pricing is often a complex yet critical aspect of selling your product. It’s important to align your pricing strategy with the perceived value of your product and your market’s expectations. Consider factors such as production costs, competitor pricing, and what your customers are willing to pay.

For example, Mailchimp started as a freemium product, offering basic services for free while charging for premium features. This allowed them to attract a large user base while generating revenue from customers who needed advanced capabilities. You can explore various pricing models and even test different price points to find the sweet spot for your product.

Here’s an insightful resource on pricing strategies for service businesses .

Market Differentiation and Communication

In a crowded marketplace, your product needs to stand out.

This requires a unique value proposition and effective communication that highlights the benefits and differentiators of your product. Whether it’s superior service quality, a unique feature, or a compelling brand story, make sure your customers know why your product is different from the competition.

Airbnb revolutionised the hospitality industry by offering a more personal and cost-effective alternative to traditional hotels.

Their marketing efforts emphasised unique, local experiences, which resonated with travellers looking for something different from the typical hotel stay.

Clearly communicating your product’s value is just as important as the product itself. Ensure that your marketing and sales materials effectively convey what makes your product unique and how it solves your customers’ problems.

Invest in a Strategic Business Plan

Developing and selling a great product isn’t just about the product itself. It’s about having a plan for business growth.

A strategic business plan helps you map out the journey from concept to market domination or as close as you get to it!

It includes not just product development, but also sales, marketing, operations, and finances. Having a solid strategy will guide your business decisions and ensure that your product aligns with your overall goals.

You can read more about the importance of strategic planning for business success here .

Conclusion

Building a great product that sells well is a process that involves;

Understanding your customers,
Strategic planning,
Customer-centric design,
Continuous adaptation

As you develop your product, keep refining it based on feedback and market trends, and ensure that your pricing and marketing strategies align with your business goals.

By focusing on the needs of your customers and executing a well-thought-out plan, you’ll be on your way to creating a product that not only sells but delights your customers and drives the growth of your business. If you need guidance in building a strong product management framework, feel free to explore product management strategies for more insights.

Ready to take your product to the next level? Get in touch today to discover how we can help you build a strong product management framework and unlock your business's full potential.

How to Build Service Products that Sell Really Well